Early takeaways from Pokémon Go's explosive success

With the buzz around Pokemon Go reaching deafening levels, it can be easy to forget it was released just a week ago.

But it isn't too soon to examine how the augmented-reality game's runaway success has provided a new template for developers and broader mobile app industry.

Here are the early numbers:

Explosive user growth. Within five hours of its July 6 release in the US, Pokemon Go had surged to become the most popular app in the App Store, according to data by Sensor Tower shared with Venture Beat. By July 8, the game had been installed on 5.16% of Android devices, already surpassing Tinder and closing in on Twitter, according to data collected by SimilarWeb.

Huge revenue generation. While Pokemon Go is free to download, the app has brought in enormous revenue through in-game microtransactions and location-based marketing partnerships with retailers. In fact, Pokemon Go has become the top-grossing app in the US, according to Sensor Tower.

Pokemon Go's success holds a number of lessons for the digital media industry:

Augmented and virtual reality is the future. Pokemon Go provides a taste of what's to come as AR and VR becomes more ubiquitous. Integrating the game with the physical landscape via Google Maps is a clear example of how to bridge digital and physical worlds. This integration between the digital and physical world is likely to become increasingly commonplace, especially in gaming and social media.

Microtransactions are a viable revenue source for some. The revenue that Pokemon Go has pulled in is a sign that microtransactions work, but underlines that the environment must be correct in order for them to be successful. In this instance, Pokemon Go shows that gamification can be effective in coaxing users into paying for digital content. Digital media companies should keep this in mind when determining whether to implement microtransactions on their sites.

Capitalizing on millennial nostalgia. The Pokemon video game franchise was a memorable component in the many millennials' childhoods. Over 277 millions game have sold since the original Red, Green, and Blue versions were launched in between 1996 and 1998. Tapping into nostalgia can be a great strategy, as researchers have found that consumers spend more when they're feeling nostalgic.